David just won the flyball lottery. he has two options for recieving his prize. the first option is to accept a 129,000 cash payment today. the second option is to receive 25000 at the end of each of the next 19 years and a 35600 lump sum payment in the 20th year. david can invest money at a 8% rate.

A: calculate the present value of the two options.

option 1

option 2

which option should david choose to receive his winnings?

B.

if David could invest money at 11% calculate the present value of the two options.

Option 1

option2

which option should he choose?